Govt to maintain vigil on private firms to ensure enforcement of retirement age rule

by news
March 26, 2017

Bengaluru: The state government in order to ensure that the private sector adheres to its decision to enhance the retirement age of employees from 58 to 60 years has asked the labor department to maintain a close vigil for the next two years it is learnt.

The state Cabinet on Friday accorded its assent to increase the retirement age of employees in the private sector. The retirement age criteria will be applicable to all private establishments which have anemployee strength of 50 and above, irrespective of whether employees are hired on contract or otherwise, the sources said.

It will come into effect from the day the labour department gazettes the final notification by bringing in an amendment to Schedule – 1 of Karnataka Industrial Employment (Standing Orders) Rules, 1961 which pertain to the retirement age. The draft notification was issued by the department on December 7, 2009. The government is yet to notify the rule. The sources said the new rule will not apply to information?technology, information technology?enabled services, startups, animation, gaming, computer graphics, telecom, BPO and other knowledge-based industries at least till January 25, 2019.

The reason given for raising the retirement age, according to the Cabinet note, is that there should be uniformity in rules for employees and also that the average lifespan of humans has increased over the years. It will also help industries and companies to gain from the experience of its employees.

Interestingly, before the Cabinet took up the proposal, the file was sent to the law department and also the commerce and industries department for their opinion.

While the law department gave its approval, the commerce and industries department did not give its opinion and it was deemed that it had no objection to the proposal, the sources added.